Westminster backs UK's wave and tidal potential

The UK has the potential to become a leading exporter of wave
and tidal technologies - if government gives the sector the support
it requires.

This is the key finding from the UK Parliament's influential Select
Committee on Energy and Climate Change.

The committee has just published its report into the future of
marine renewables in the UK. It confirms what I already believe -
the UK can build a world-leading industry, but it does require
support.

The report is based on written evidence and a series of select
committee hearings where a number of leading utilities, industrial
companies and technology developers, including Aquamarine Power,
were called to give evidence.

Many of us cited the example of Denmark, which has successfully
built a £multi-billion wind turbine export industry with technology
first developed here in the UK.

What did they do that we did not? They put in place a supportive
grant structure and a clear, stable long-term tariff to incentivise
investment.

The Department of Energy and Climate Change and the Scottish
Government have both played a vital role in supporting the UK's
wave and tidal companies to date, and are finalising the details of
an appropriate grant regime for the first marine energy test
arrays. What is needed now is clear sight of the long-term
tariff.

Long-term signal required

Private sector investors (and they are out there) can see the
support available via Renewable Obligation Certificates until 2017,
when they will be phased out.

Beyond that, the view is unclear. The critical enabler for our
industry will be the long-term signal of a suitable marine energy
feed in tariff (FIT).

The shift from ROCs to FITs has already unsettled potential
investors, and what we need now is a stable tariff that will stay
in place, and not be tinkered with for a number of years.

The UK Government has already signalled it will provide
certainty on this issue by 2014. The Energy and Climate Change
Committee has urged DECC to deliver its decision in 2013.

We agree. There is no doubt this industry can deliver investment
and growth, but early sight of the marine energy FIT will be
key.